Pakistan Consumers May See Electricity Bill Relief as Regulators Review Fuel Cost Cut

CPPA seeks a 65-paisa per unit reduction for October’s fuel adjustment; NEPRA to decide on 27 November

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Pakistan’s electricity consumers, who have struggled for months with rising bills, may soon receive some financial relief. A new proposal from the Central Power Purchasing Agency (CPPA) has created hope for lower tariffs next month. The proposed cut will apply nationwide and include K-Electric consumers in Karachi.

NEPRA to Review CPPA Proposal

The CPPA has requested a 65-paisa per unit reduction under October’s monthly Fuel Charges Adjustment (FCA). NEPRA will hold a hearing on 27 November. After this session, the regulator may grant formal approval for the cut.

The FCA mechanism adjusts power tariffs every month based on changes in fuel costs. When fuel prices fall or cheaper energy sources enter the mix, consumers usually benefit. Over the past year, however, many households saw their electricity bills rise due to expensive imported fuels, a weak currency, and high capacity payments.

Even a small cut, such as the proposed 65 paisa per unit, can ease pressure on middle-income families who already face record inflation.

October’s Power Generation Mix

The CPPA report shows that power companies generated 9.63 billion units of electricity in October. The average cost of this generation stood at Rs 8.71 per unit. A diverse energy mix helped keep costs from rising further.

Here is the breakdown:

  • Hydropower: 27.36%

  • Nuclear energy: 22.13%

  • Local coal: 12.76%

  • Imported coal: 4.71%

  • Local natural gas: 9.16%

  • Imported LNG: 19.72%

Nuclear plants produced the cheapest electricity at Rs 2.17 per unit. Hydropower also offered affordable generation, helped by seasonal water availability. In contrast, imported LNG and coal remained expensive and pushed overall costs upward.

Pakistan’s reliance on imported fuels continues to challenge energy planners. Global market fluctuations drive up costs and make electricity tariffs unpredictable.

Why Household Bills Increased

Several factors contributed to the recent surge in electricity prices:

  • Global fuel prices remained high due to geopolitical tensions.

  • The Pakistani rupee lost value, which made imported fuels costlier.

  • Capacity payments to power producers added significant financial pressure.

  • Seasonal dips in hydropower forced a shift toward expensive thermal power.

These pressures triggered nationwide frustration. Many cities witnessed public protests, while traders demanded government action to stabilize tariffs. For a broader look at upcoming tariff trends, you can also read our detailed report on the expected price surge next month: Pakistan Faces Likely Rise in Electricity Prices Next Month.

What the Potential Cut Means for Consumers

If NEPRA approves the CPPA request, consumers will see a reduction in next month’s electricity bills. Although the cut may not reverse the earlier tariff hikes, it can still offer meaningful relief for households and small businesses.

K-Electric consumers in Karachi will also benefit. They often receive separate tariff adjustments, so a uniform reduction across the country offers welcome consistency.

The government has promised to lower the overall cost of electricity by promoting domestic energy sources. Hydropower, nuclear energy, and local coal play a central role in this strategy. The October data shows gradual movement toward this goal.

Outlook for the Coming Months

NEPRA’s upcoming decision carries importance for millions of Pakistanis. Approval of the cut would bring short-term comfort. However, experts argue that long-term stability requires deeper reforms. These include reducing dependence on imported fuels, fixing transmission losses, and improving governance in the power sector.

For now, many consumers view the potential reduction as a small but hopeful step. After months of financial strain, even limited relief feels significant.

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